On July 23, 2013.
Hahne's department store at 609 Broad St in Newark—vacant since 1987—will finally be transformed into a mixed-use centerpiece of Downtown Newark's revitalization. (Combined with Rick Moranis' addition to his resume, a new album, it's been a good week for things vacant since the '80s.)
Today, the City's Central Planning Board approved a plan by L+M Development Partners, the Hanini Group, and Goldman Sachs Urban Investment Group to restore the 400k SF landmark. Look for the addition of a fifth floor for penthouses and a new six-story building at Halsey and New streets. The completed redevelopment will include: 180 residential units; 80k SF of commercial, community, and office on the upper floors; 80k SF of ground-floor retail; and 200 underground parking spaces. Prudential, which is building its own $444M office tower next door, loaned $7.5M toward the acquisition through its social investments program.
Tech Firm Relocates to 1325 Ave of the Americas
This morning, we snapped Paramount's 1325 Ave of the Americas on 53rd Street, to which tech research firm Gartner is relocating from 291 Broadway and 5 E 54th St. Noam Shahar of CompStak, which runs a lease-comp exchange, tells us the tech firm has leased the 25k SF 18th floor (already built out with 32 offices and four conference rooms) for 10 years in the low $50s/SF.
Madison Capital has bought a 6,190 SF, City-owned, triangular parking lot at 19 E Houston between Broadway and Crosby Street and will develop a commercial property there, the firm's Joseph Jacobson tells us. The MTA, which parks emergency-response vehicles there, will get $26M plus a relocation property in the Flatiron. Redevelopment plans will go through ULARP and must involve the subway entrance on site.
Thor Equities acquired the 140k SF 545 Madison from BlackRock, Lehman, and LCOR and the retail portion of the Milford Hotel at 700 Eighth Ave from RockPoint Group and Highgate Holdings. In March, LW Hospitality Advisors CEO Dan Lesser told us the owners might sell the retail and hotel separately for more than a single sale would have brought in. They had already sold the land to Deutsche Asset & Wealth Management and David Werner and taken out a 99-year ground lease.
BRG acquired Metropolitan 1—a 311-unit, five-building apartment portfolio in Elmhurst—from a real estate investment group for $38M. Ariel Property Advisors' Michael Tortorici, Shimon Shkury, Victor Sozio, Randy Modell, and Jonathan Berman repped the sellers. The 235k SF portfolio: 41-23 Gleane St, 37-52 89th St, 43-23 Ithaca St, 40-94 Denman St, and 91-31 Lamont Ave.
Opportunistic investor Capstone Realty Group bought the 80k SF, Trader Joe's-anchored Edgewater Marketplace at 715 and 725 River Rd in Edgewater, NJ, for more than $20M. It plans to modernize the shopping center.
Treetop Development paid $13.6M for 50 apartments and seven retail units at 17-27 W 125th St. Marcus & Millichap's Peter Von Der Ahe, Glen Kunofsky, Scott Edelstein, and Seth Glasser repped both parties, and Greenberg Traurig's Steven Fleissig and Joshua Hager advised Treetop.
An Atlas Capital Group subsidiary bought the 6,800 SF 325 Bowery for $9.3M. RKF's Robert Futterman and Brian Segall arranged the deal.
Inter-County Bakers, repped by NGKF's Ralph Perna, acquired Deer Park's 108k SF 1095 Long Island Ave warehouse from the Guggenheim Foundation for $6.3M in a 1031 exchange. It'll raise the roof, expand to 115k SF, and add refrigeration. Inter-Country is relocating from 98k SF at 110 and 1110A Route 109 in Lindenhurst, which it sold to Clear Flo Technologies for $6.2M. The Town of Babylon Industrial Development Agency kicked in tax breaks.
Seth Pinsky has resigned as president of NYCEDC, effective September, to join RXR as EVP and investment manager for the RXR Metropolitan Emerging Market Strategy. The focus is areas with long-term potential that have lacked private investment. Mayor Bloomberg has nominated NYCEDC exec director Kyle Kimball, who worked on JetBlue's relocation to LIC and the consolidation of Brooklyn Bridge Park under NYC control, as Seth's replacement.
Meridian Capital Group's Aaron Appel and Moshe Majeski originated a $230M, one-year (plus six-month extension), interest-only loan to finance JDS Development Group and Property Markets Group's previously announced acquisition of Steinway Hall at 109-113 W 57th St. As part of the same transaction, the borrowers recapped and consolidated their development parcel at 105-107 W 57th St.
And Meridian's Abe Hirsch and Zev Karpel negotiated $155M from Cornerstone Real Estate Advisors for 12 years for Cammeby's International's acquisition of the UES's 522-unit Monterey at 175 E 96th St.
HFF's Michael Tepedino, Steven Klein, and Jennifer Keller repped the borrower in a $100M loan from Prudential Mortgage Capital for a 510-unit residential property on 39th Street between First and Second. Sarah Teunis and Kathryn Bradford repped Pru internally.
Telx leased 73k SF for 20 years in Rudin Management's 32 Ave of the Americas in TriBeCa for data center space.
World Business Lenders, repped by Studley's John Johnson, leased 23k SF in SL Green's recently renovated 120 W 45th St, known as Tower 45. JLL's Paul Glickman, Frank Doyle, Mitti Liebersohn, Diana Biasotti, and David Kleiner repped SL Green.
Regus, repped by JLL's Patrick Heeg and Jim Wenk, leased 23k SF in Savannah's 31 Penn Plaza. JLL's Mitchell Konsker, Matthew Astrachan, and Matthew Polhemus repped the landlord.
Cahill Gordon & Reindel, repped by NGKF's Moshe Sukenik, signed a 14k SF lease to expand to 250k SF at Rudin Management's 80 Pine St, where its had its headquarters since the building opened in 1960. Rudin's Thomas Keating and Gene Baumstein repped the landlord.
Marks Paneth & Shron, repped by Colliers' Ted Rotante, sublet 12k SF in Vornado's 2 Penn Plaza to Jacobs Engineering Group. It had been occupied by Rosenberg Neuwirth & Kuchner, which Marks Paneth acquired and relocated to its 685 Third Ave office. Cushman's Michael Burlant repped Jacobs.
The World Trade Centers Association is relocating from Midtown (the Graybar building at 420 Lexington) to Downtown's Equitable Building at 120 Broadway. The non-profit, international trade association signed 12k SF built-out and furnished for 10 years. Norman Bobrow & Co's Shawn Harooni repped the tenant, and Camille McGratty repped landlord Silverstein Properties in house.
Our Wicked Lady leased 6,900 SF at 153 Morgan Ave in Bushwick for a bar, rooftop deck, live-music venue, and rehearsal rooms. Kalmon Dolgin Affiliates' Vincent Lopez and Jacques Wadler repped both sides.